14 September,2026 02:06 PM IST | New Delhi | mid-day online correspondent
Representational Image. File pic.
Wholesale Price Index (WPI) inflation expanded slightly to 9.92 per cent in August, as against 9.78 per cent in July, as per the provisional data released by the government on Monday. The WPI inflation had marginally eased in July.
"Across groups, mineral oils (containing petroleum products), food articles, manufacture of food products, manufacture of basic metals, non-food articles, and manufacture of chemicals and chemical products have been major drivers of WPI inflation in August 20262," the commerce and industry ministry said while releasing the monthly Wholesale Price Index (WPI) data.
The WPI food index rose to 7.05 per cent in August, from 6.65 per cent in July.
In manufactured items, WPI inflation was at 8.37 per cent in August, compared to 8.29 per cent in July. The WPI inflation in the fuel and power category increased to 22.93 per cent in August from 20.05 in July.
The WPI has largely shown an increasing trend since the beginning of this fiscal year, as the crude oil prices were at an elevated level due to the US-Iran conflict. India is the third largest importer and consumer of crude oil and the elevated crude and fertiliser costs have a spillover effect on food prices.
The RBI during its August monetary policy committee meeting had kept the benchmark policy rates unchanged at 5.25 per cent and projected retail inflation at 5 per cent for FY27, citing monsoon deficiency and El Nino conditions.
Meanwhile, final index for June has been revised from 110.2 (provisional estimate) to 110.3, the ministry said.
Accordingly, WPI inflation has been revised from 9.87 per cent, as per provisional estimate to 9.97 per cent as per the final estimate, it said.
Inflation is the continuous increase of prices of goods and services over time in an economy. This affects the purchasing power of money. This means that over time you buy less for the same amount of money.
If the input cost increases, the prices of goods and services increase. With rising crude oil prices, the input and transportation costs increase, and thus, the prices of products or services may increase.
Prices can also increase if demand is higher than supply. For example, if there is an adverse monsoon effect (a deficit or excess rainfall that can cause droughts or floods), then the agricultural produce may become limited. As the availability of fruits and vegetables is less while demand remains high, it leads to an increase in prices.
When inflation rises sharply and suddenly, it impacts consumers negatively as the cost of goods and services increases but incomes do not increase proportionately.
